Sarasota Custom Electronics (RCE) sells and installs complete security, computer, audio, and video systems for homes. On newly
constructed homes it provides bids using time-and-material pricing. The following budgeted cost data are available.
Material
Time
Loading
Charges
Charges
Technicians' wages and benefits
$162,000
Parts manager's salary and benefits
$36,720
Office employee's salary and benefits
40,500
16,200
Other overhead
20,250
45,360
Total budgeted costs
$222,750
$98,280
The company has budgeted for 6,750 hours of technician time during the coming year. It desires a $38 profit margin per hour of labor
and an 80% profit on parts. It estimates the total invoice cost of parts and materials in 2022 will be $756,000.
(a)
Compute the rate charged per hour of labor. (Round answer to 2 decimal places, eg. 10.50.)